OTHM Level 3 Foundation Diploma in Accountancy

OTHM Level 3 Foundation Diploma in Accountancy

Recording Financial Transactions (20 Credits)

Description: Covers the recording of financial transactions, preparation of source documents, books of prime entry, and classification of income and expenditure for accurate financial reporting.

Key Topics:

• Purpose of financial records (control, monitoring, stakeholders)
• Source documents & books of prime entry (invoices, receipts, cash book, journals)
• Classification of income & expenditure
  • Capital vs Revenue expenditure/income
• Impact of incorrect classification on financial statements

Management Information (20 Credits)

Description: Focuses on cost and management accounting, labour cost analysis, and the use of ICT in financial information management for decision-making.

Key Topics:

• Cost vs management vs financial accounting
• Costing methods (job, batch, process)
• Labour cost accounting (wages, overtime, idle time, earnings analysis)
• ICT in accounting (spreadsheets, databases, accounting software)
• Data analysis using basic functions and charts

Maintaining Financial Records (20 Credits)

Description: Introduces core bookkeeping principles including double-entry system, cash book preparation, and bank reconciliation.

Key Topics:

• Accounting concepts (assets, liabilities, capital)
• Double-entry bookkeeping system & ledger accounts
• Trial balance preparation
• Three-column cash book (cash & discounts)
• Bank reconciliation statements and differences with bank records